Analysts Are Updating Their Industries Qatar Q.P.S.C. (DSM:IQCD) Estimates After Its Yearly Results

Last week, you might have seen that Industries Qatar Q.P.S.C. (DSM:IQCD) released its full-year result to the market. The early response was not positive, with shares down 3.1% to ر.ق13.30 in the past week. Industries Qatar Q.P.S.C beat revenue expectations by 3.2%, at ر.ق13b. Statutory earnings per share (EPS) came in at ر.ق0.74, some 5.0% short of analyst estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Industries Qatar Q.P.S.C

After the latest results, the nine analysts covering Industries Qatar Q.P.S.C are now predicting revenues of ر.ق13.8b in 2025. If met, this would reflect a meaningful 8.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 4.8% to ر.ق0.78. Before this earnings report, the analysts had been forecasting revenues of ر.ق13.7b and earnings per share (EPS) of ر.ق0.80 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The consensus price target held steady at ر.ق15.46, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Industries Qatar Q.P.S.C, with the most bullish analyst valuing it at ر.ق18.80 and the most bearish at ر.ق13.60 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Industries Qatar Q.P.S.C's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Industries Qatar Q.P.S.C's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.7% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.7% per year. So it's pretty clear that, while Industries Qatar Q.P.S.C's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Industries Qatar Q.P.S.C. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ر.ق15.46, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Industries Qatar Q.P.S.C analysts - going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Industries Qatar Q.P.S.C that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.